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Israel's Iron Dome anti-missile system successfully intercepted a missile fired by terrorists operating in the Sinai Peninsula at the southern Israel resort city of Eilat late Monday night.

The missile was fired at a time when the bulk of the city's residents and visitors are enjoying Eilat's famous night life.

Sirens sounded in the resort city, but officials said there was little panic. Eilat has been targeted on several occasions in recent years, and an Iron Dome battery was recently redeployed there over concerns that growing lawlessness in Sinai would increase the threat.

This latest attack was claimed by a Sinai-based Al Qaeda affiliate. The group says the attack was carried out in retaliation for the alleged killing of four of its members last week in an Israeli drone strike.

Egyptian army officials have denied that an Israeli drone penetrated Egyptian air space, and insisted there was no direct cooperations between the Israeli and Egyptian armies in rooting out Sinai-based terror groups.

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